BUSINESS Secretary Lord Mandelson has signalled support for a scaled-down version of the failed Tesco-Everton FC bid.

He said that he was “fully aware” of the frustration felt in Kirkby by the loss of £400m private sector regeneration cash, and the long-term impact on employment of such “missed opportunities”.

His assurances came yesterday in a 30-minute London meeting with Knowsley North MP George Howarth, council leader Ronnie Round and chief executive Sheena Ramsay.

They came as Cllr Round reiterated that Knowsley will not walk away from the redevelopment of Kirkby and will “deliver”.

Lord Mandelson was underlining assurances given last week by his department that the vetoing of the original proposal did “not rule out” action to resurrect the development with or without a new Everton stadium.

Lord Mandelson cannot overrule the decision taken by Communities Secretary John Denham, following a planning inspectorate verdict that a massive Tesco store and additional retail would impact on neighbouring town centres.

But his remit is to do his “utmost” to ensure that potential jobs and investments in neglected areas are protected.

And as Gordon Brown’s “first minister”, he will have substantial clout in any revived plan involving the interested parties, Tesco and Knowsley council.